Which of the following statements is true about the regulation of accounting practice in its early period of development?
A) Accounting was largely determined by accounting theory.
B) Accounting was largely determined by accounting standards issued by the accounting profession.
C) Accounting was largely determined by the national Securities and Exchange Commissions and resulting legislation.
D) Accounting was largely determined by generally accepted practice.

Question

Quizplus · Accepted Answer

In the early period of development of accounting practice, there were no formal accounting standards or regulations in place. Accounting practices were largely determined by generally accepted practices and customs within the business community. Accounting theory was still in its early stages of development and not yet widely accepted. National securities and exchange commissions and resulting legislation did not yet have a significant role in regulating accounting practices.

Which of the Following Statements Is True About the Regulation